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EUR/USD tests the 200-day SMA as traders look to the ECB

The pair was last around 1.1640, with the 200-day SMA near 1.1633 acting as the key near-term level before the ECB decision.

Reported · Written up by our desk · Major Pairs

EUR/USD struggled to push further higher on Wednesday, trading around 1.1640 as it attempted to break above the 200-day simple moving average near 1.1633. FXStreet linked the choppier tone to volatility around a US Treasury bond-buyback announcement, which briefly lifted Treasury yields and helped the US dollar trim earlier losses.

Traders were also holding back on aggressive bullish positioning ahead of the European Central Bank’s interest rate decision on Thursday. According to FXStreet, strategists at Scotiabank expect a 25 basis point rate hike at Thursday’s meeting and another 25 basis points priced in for December, with a hawkish tilt tied to President Lagarde’s guidance and concerns about upside risks.

FXStreet said the broader technical picture remains constructive while EUR/USD holds above the 50-day and 100-day SMAs and stays marginally above the 200-day area. The pair has formed higher highs and higher lows since recovering from below 1.1400 in late July, while RSI sits just above neutral, around 58, signaling steady but not excessive bullish momentum.

On levels, FXStreet pointed to resistance near 1.1700 and then around 1.1800. It cited support at the 200-day SMA near 1.1633, followed by the 100-day SMA at 1.1561 and the 50-day SMA at 1.1522, with a drop that could revisit the 1.1400 structural support.

Latest closeEUR/USD 1.163 ▲0.0%

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